AERM

6 VLCC NBs, delivery, 07/2026, 01/2027, 08/2027, 10/2027, 12/2028, 03/2029 (Paid 75m$, remaining capex 662m$, 737 total) & 2 Options (118 eachm$, paid zero, deliveries q3/q4/2029).
Funding plan: NBs 737, paid 76, Rem. Capex 662, Cash 89, Funding need 573.

Koch Shipping Pte. Ltd. and Drew Holdings Ltd. each held about 25% at the time of the private placement in October 2025, anchoring the shareholder base and supporting execution through the delivery funding period. Prior execution in listed shipping platforms, most recently Himalaya Shipping, supports capital markets access and increases the likelihood of an IPO-style liquidity event over time.

Timing strengthens the upside.
Two vessels deliver in six and 12 months, while ordering a new VLCC today
implies a lead time of three to four years given shipyard backlogs. In a firm market, earlier delivery can
command a premium because the vessels are on the water when earnings are available.

This is not only an asset value story.
Bruton intends to adopt a shareholder return framework consistent with
prior sponsor-backed listed vehicles, distributing free cash flow through monthly dividends once the
company is cash generative. As deliveries convert NAV into earnings and distributions, we expect valuation
to lean more on yield visibility and operating leverage as the fleet is delivered.

Valuation:
We estimate NAV at about NOK 44 per share based on delivery-year benchmark pricing. China
built VLCC newbuild values increase for nearer delivery slots, from about $120 million for 2029 deliveries to
$126 million for 2028, $133 million for 2027, and $147 million for 2026. Applying this curve to Bruton’s delivery
profile implies an average fleet value of about $128 million per ship, excluding the dual fuel premium on two
vessels. If the fleet is valued in line with Korean-built benchmarks at $136 million per ship, NAV increases to
NOK 52 per share. Our NOK 54 target reflects a $50,000/day market in 2027 and 2028, modestly above the
current time-charter rate strip, implying an average value of about $138 million per ship. Bruton has
remaining capex commitments of $573 million, which we expect can be funded with relatively high LTV,
including sale and leaseback structures. A reasonable debt solution, before any potential IPO or vessel sales
reduce the funding need, could imply a cash breakeven rate of about $40,000/day, providing geared
exposure to the VLCC market through NAV and asset value sensitivity. Beyond our near-term target, we see
further upside as the fleet delivers and the dividend framework is established, which could support pricing
above NAV as the market increasingly values yield visibility.

Too early to buy into this one.
Revisit on market weakness and after their first delivery.

Good Stats on VLCC OB and Fleet status.